Divorce Analysis

Once a marriage has broken down and a decision is made by one or both parties to divorce, the impact can be devastating. Divorce is devastating—not only to the individuals involved, but also to the children, family, friends, and employers of the divorcing couple. Divorce not only has a traumatic emotional impact, but a financial impact as well.

Because of the financial complexity of many divorces, financial professionals are being asked to play an active role in helping individuals and attorneys sort through the financial issues related to divorce. By including a financial professional, Attorneys have found new ways to help their clients obtain an equitable financial settlement. Attorneys, mediators, arbitrators, and judges are looking for experts that are knowledgeable about the financial issues of divorce. At ARTAAD Financial, we try to help clients and attorneys avoid the following common mistakes:

ARTAAD Financial

Negotiating to retain the marital home when the client cannot afford it

Not obtaining complete information on all retirement plans, employee benefits, and stock options

Not evaluating the defined benefit pension plan correctly

Thinking that retirement assets have the same value as an equal dollar amount of nonretirement assets

Not understanding the different division methods of a retirement asset and not knowing which one is in your client’s best interest

Not understanding the purpose of a Qualified Domestic Relations Order (QDRO) or the need to get it completed and filed at the time of the divorce or immediately after the divorce is final

Not looking at the long-term impact of a financial settlement

Failure to factor in inflation and investment returns when looking at the long-term impact of a settlement, or using unrealistic numbers in the evaluation

Not being aware that it is possible to take a distribution from a retirement plan prior to age 59 ½ and avoid the 10% penalty

Not protecting the survivor benefits for the non-employee spouse

Not protecting spousal and child support payments through life insurance

Not understanding the importance of making the spouse who receives the spousal and child support payments the owner of a life insurance contract

Improperly structuring spousal or child support payments

Using a QDRO to divide an IRA

Making isolated financial decisions versus looking at the big picture and analyzing how each financial decision impacts other decisions

Not taking into account transaction costs when evaluating a settlement offer

Failing to understand the tax implications of alimony payments versus child support payments

Believing that a 50/50 division of property is an equitable division of property

Not understanding methods or tax implications of dividing stock options

Failing to consider the cost basis of property

Not understanding the capital gain taxes upon the sale of the marital home or how the sale can impact each party

Not understanding how to divide debt

Not taking into account the effect of deferred taxes when dividing the assets

At ARTAAD Financial, we help clients who have to make financial decisions such as these, attorneys arguing their case, mediators working through the financial issues with a divorcing couple and judges who could use the information to assist in making a fair decision.

Get in Touch

ARTAAD Financial services clients all over the state of Georgia and in other areas where there are significant relationships. To see if we are a good fit for your financial services, contact us today.

This website is designed for general information only. The information presented at this site should not be construed to be formal investment or planning advice nor the formation of a financial advisor/client relationship.